John Stumpf, the embattled chairman and chief executive of Wells Fargo, is stepping down, amid mounting anger from investors and policymakers over the creation of fraudulent customer accounts.
-
The No. 3 U.S. bank by assets has made a change at the top after a snowballing scandal involving the creation of fraudulent accounts.
October 12 -
The compensation loss is the biggest for a major U.S. bank chief since the 2008 financial crisis.
September 28 -
The penalty is the largest ever imposed by the Consumer Financial Protection Bureau.
September 8
From recommending wrong share classes to cherry-picking allocations, these are the pitfalls advisers should avoid.
Stumpf, 63, will leave his post after nearly a decade as CEO, the bank said Wednesday. The change was described as a retirement by Wells and is effective immediately. He will be succeeded by Tim Sloan, 56, who currently serves as president and chief operating officer. Sloan, in his current role, is responsible for the bank's four main business groups: community banking, consumer lending, wealth and investment management and wholesale banking.
The departure marks the rare case of a major U.S. bank CEO resigning amid accusations of company misconduct. It also caps a remarkable change in fortune for a bank that, following the crisis, was regarded as a marquee brand.
Calls for Stumpf's resignation had escalated in recent weeks after the San Francisco company said on Sept. 8
More than 5,300 employees across the country were fired between 2011 and 2014 for creating the unlawful accounts.
Shortly after the settlement was disclosed, Wells Fargo said it would
Still, Wells has struggled to contain the fallout from the cross-selling scandal - and, in the meantime, the company's once-sterling reputation
Adding to the furor was a disastrous appearance by Stumpf in front of
Stumpf also provided confusing answers about whether senior executives have been held responsible for the scandal - and if they will be
Stumpf was named CEO of Wells Fargo in
In his first few months on the job, Stumpf oversaw one of one of the biggest deals in banking history, when Wells Fargo agreed in late 2008 to buy the $510 billion-asset
Stumpf spent more than three decades at
In 2002, Stumpf was named executive vice president and head of community banking. He was promoted to the roles of president and chief operating officer
In the lead-up to the announcement Wednesday, Sloan was widely viewed as the heir apparent. Still, some analysts had called on Wells to consider external candidates, arguing that an outsider was necessary to change company culture.
Sloan has been with Wells Fargo for 29 years. He was named
